The government's recent proposal to raise taxes on the wealthiest segment of society is a step in the right direction.
At a time when Bangladesh is grappling with limited fiscal capacity and growing public expenditure needs, a more progressive tax structure is not just desirable -- it is imperative.
According to recent reports, the government is considering increasing the top income tax rate for ultra-rich individuals from 30% to 35%, targeting those earning above Tk 1 crore annually.
This is certainly an overdue acknowledgment of the simple fact that those with greater financial capacity must shoulder a proportionately greater responsibility.
For too long, the country’s tax ecosystem has leaned disproportionately on the middle-income earners.
These individuals, often taxed at source, have little room for evasion, while many affluent entities continue to exploit loopholes or avoid proper declaration altogether.
This has, unfortunately but not surprisingly, resulted in a structurally inequitable system -- one where the burden is visible and immediate for the average citizen, but optional for the powerful.
Raising taxes on the wealthy, therefore, must go hand in hand with enforcement. Without robust mechanisms to track income, prevent evasion, and ensure compliance, higher rates risk becoming symbolic rather than substantive.
Bangladesh’s tax-to-GDP ratio remains lacking, and improving collection efficiency is just as important as adjusting rates.
Equally critical is the question of accountability: Citizens are more likely to accept taxation when there is transparency in how revenue is collected and spent.
Digitization of tax systems, reduction of discretionary power at the point of collection, and clear public reporting can go a long way in restoring trust.
Ultimately, tax reform must not become another avenue for pressuring those already within the system. It should instead expand the net upward -- towards those who have long remained beyond meaningful scrutiny.
A fair system is not one where everyone pays more, but where everyone pays what they truly owe.